Retirement News : Seniors : Finding the right retirement numbers

Finding the right retirement numbers

Date Added: 01-11-2005

Seniors in New Zealand have the same question as their peers around the world: how much do I need to retire comfortably?  Read the excerpt below.

Stuff.co.nz - Wellington,New Zealand

31 October 2005 

By TERRY HALL
Rising house and farm values are leading to a rapid rise in individual wealth – though it doesn't seem to be easing worries about how much money you need for a comfortable retirement.

One recent estimate suggested as many as one in 10 Kiwis may be worth $1 million. This is probably far too high, because by international standards New Zealand is a low-wealth economy peopled by poor savers with low levels of inherited wealth.

Whatever the figure, it can be expected that a fair proportion of the wealthier among us will be retired. Some will be living extremely comfortably, others will be scratching to make ends meet.

Data on individual New Zealand wealth is sparse. While there are growing numbers of wealthy people, much of their money is tied up in trusts, invested overseas or in family property.

The actual average wealth figure is likely to be relatively modest, as a result of years of low incomes and because many workers are either unable to save or do not have access to a company pension scheme. One survey put the savings of an average retired couple at just $37,000 after the value of their home and car.

Living the good life in retirement – without financial worries – is a challenge for many but seems easy for others. Many, including some members of my own family, have coped reasonably well on little more than the state pension.

Read the entire article:

http://www.stuff.co.nz/stuff/0,2106,3462989a1865,00.html